Arkade Developers Eyes Rs 1,000 Crore In Pre-Sales This Fiscal
Arkade Developers intends to target a CAGR of 25–30% on a year-on-year basis, Chairman Amit Jain told NDTV Profit.
Arkade Developers Ltd., which recently got listed on the bourses, is targeting Rs 1,000 crore pre-sales in FY25, according to the company’s Chairman and Managing Director Amit Jain.
“This year we are looking at a Rs 1,000 crore pre-sale, and on a year-on-year basis, we intend to target a CAGR of 25–30%,” Jain told NDTV Profit.
Shares of Arkade Developers listed on the BSE and NSE at a premium of 37.4% and 36.7% over the offer price.
The company floated its IPO to raise Rs 410 crore through a fresh issue. Jain said that Rs 250 crore from the funds will go towards funding for approval of Arkade’s projects.
“The objects of this IPO are broadly of two categories. One is to suffice funds for approval of three of our ongoing projects and the second main object is towards payment of fresh lands to be acquired for development,” he said.
The funds will be used for securing pending approvals for Arkade Nest, Arkade Pearl, and Arkade Eden.
Arkade Nest is a new project in Mulund, whereas Arkade Pearl and Eden are redevelopment projects in Vile Parle and Malad, the top executive informed.
“The remaining Rs 150–180 crore is for general corporate purposes and fresh land acquisition,” he said.
The company currently has 10 ongoing projects across western suburbs as well as eastern suburbs of the Mumbai Metropolitan Region. It plans to expand to Thane, but is not eyeing new cities as of now.
“Mumbai is a very mature market which makes it safer. The demand for properties in the city is insatiable. Currently, we see enough potential in Mumbai to explore,” Jain said.
The company chairman said that currently Arkade Developers does not have any external debt.
“We have seen people who are exposed to debt suffer a lot. Their major cashflow goes towards the interest payment, which effectively converts into a red balance sheet. That is why you will not see bigger debts in our books,” he said.
Arkade Developers's IPO price band was Rs 124–128 per share. On the second day of trading, shares of Arkade Developers closed at Rs 155.85 on the BSE, down by 6.02% from its previous close of Rs 165.85. The stock opened higher at Rs 166 on BSE, touching its intraday high at open.
